National Foods : 2022 Annual Report Final

Our Vision

To be the preferred supplier of branded FMCG and Stockfeed products in Zimbabwe and selected regional markets.

Our Mission

• We manufacture and distribute a diversified portfolio of branded FMCG and Stockfeed products to the consumer mass market.
• To delight our customers and consumers through delivering profitable category based initiatives.

Overview

06 History of Our Group

08 Group Structure

10 Our Products and Brands

RESPECTFUL

We are professional, promote diversity, encourage dialogue, value other people's perspectives, time and space as well as insist on civility from all employees no matter their position in the organisation chart.

INNOVATIVE

HARDWORKING

We make the most of our time and consistently produce good work, in addition, we are productive motivated, dedicated, and self-reliant.

12 Recognitions and Awards

Performance

Review

16Performance Highlights

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18Chairman's Statement

Governance

26 Directorate and Administration

28 Corporate Governance

31 Risk Management

33 Ethics AndBusiness Conduct

Sustainabilityin Our Business

38 Sustainability Strategy and Governance

40 Materiality Process

41 OurStakeholders and Relationships

43Making Health and Nutrition Affordable

andAccessible

46 Responsible Production

48Environment andClimate Change

56 Our Employees

58Occupational Health and Safety

61Trainingand Development

63Diversityand Inclusion

64 Human Rights

65COVID-19 Management

66 Community Investment and Development

69 Supply Chain

69Paymentof Taxes

71 Sustainable Development Goals

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National Foods Holdings Limited, a company listed on the Zimbabwe Stock Exchange (ZSE) is proud to present the annual report for the year ended 30 June 2022. The report conveys information on our financial and sustainability performance, demonstrating how we have created value for our varied stakeholders in the past year.

The contents of this report are intended to give the reader insight into noteworthy aspects of the National Foods business, as well as the industry within which it participates. The report allows us to present the information in a clear, transparent, accurate manner to a reasonable and sufficient degree.

The information should be timely, factual, useful, as well as readily available and understandable. This does not require proprietary information to be made public, nor does it involve providing information that is privileged or that would breach legal, commercial, security or personal privacy obligations.

Reporting Boundary

The report covers information for National Foods Holdings Limited, whose core operations are based in Zimbabwe. In this report, unless otherwise noted, references to ''our'', ''we'', ''us'', ''the Company'', ''the Group'', "NFL", "National Foods" refers to National Foods Holdings Limited.

The report reflects our belief in strong corporate sustainable practices underpinning our value creation for our stakeholders. We use the dynamic cyclical approach towards continued performance improvement in our operations as well as in our reporting. In the context of this report and our forward looking statements "shall" indicates a requirement; "should" indicates a recommendation; "may" indicates a permission; and "can" indicates a possibility or a capability.

Reporting Frameworks

Throughout this document, we used a range of guidelines and reporting criteria for presenting information in this report. Key standards, guidelines and frameworks applied are as follows:

• Companies and Other Business Entities Act (Chapter 24:31)
• International Financial Reporting Standards (IFRS)
• Zimbabwe Stock Exchange (ZSE) Listing Requirements
• The Zimbabwe National Code of Corporate Governance
• International Standard Organisation (ISO) 26000 Guidance on Social Responsibility (SR)
• The Global Reporting Initiative (GRI) Standards

A summary of the applicable United Nations Sustainable Development Goals (SDGs) in relation to National Foods is also presented.

Assurance

The scope of work performed by the Company's independent financial auditors, Deloitte & Touche (Zimbabwe) as part of their assurance of financial information is provided on page 76 to 79. Other non-financial information provided in this report has been internally audited by Instinct Risk Advisory Services. The report is primarily endorsed by third party conformity assessment activities which include:

• Impartiality - objectivity with regard to the outcome of a conformity assessment activity
• Independence - freedom of a person or organisation from the control or authority of another person or organisation
• Validation - confirmation of plausibility for a specific intended use
  or application, through the provision of objective evidence that specified requirements have been fulfilled
• Verification - confirmation of truthfulness, through the provision of objective evidence that specified requirements have been fulfilled

Sustainability Report Declaration

The international standard ISO 26000 is the framework used to integrate Social Responsibility (SR) into our values and practices and communicates the commitment, performance and other information related to SR for the sustainability information in this annual report. ISO 26000 is interoperable with most Protocols and may be used in conjunction with the GRI protocol1. Black Crystal Consulting provides the third party assurance that all considerations were taken into account to ensure the report complies in all material aspects with provisions of the selected standard and linkage requirements.

Forward Looking Statements

The report contains forward-looking statements concerning the financial condition and business operations of National Foods. All statements other than those of historical fact may be deemed to be forward-looking statements. These are statements of future expectations based on management's assumptions and expectations, hence they involve known and unknown risks which may lead to results and performance differing materially from those implied in these statements

Feedback

The Company values opinions from all our stakeholders which assist us in building a sustainable Company and improving our reporting. We welcome feedback which can be provided to our Company Secretary Leigh Howes, email leigh.howes@natfood.co.zw.

Todd Moyo

Independent, Non-Executive Chairman

Michael Lashbrook

Chief Executive Officer

National Foods Annual Report 2022

History of Our Group

Since our corporate establishment in 1920, we have remained resilient and committed to feeding the nation.

National Foods has a long history stretching back to the early part of the last century, when two families, the Palte family and the Harris family, started separate businesses, which eventually came together as one.

2021

1984

National Foods Workers Trust (Private) Limited was established to provide a scheme for worker participation in both the equity and profits of the company. Through donations from the company, the Trust has acquired 9.53% shareholding over the years

2003

Innscor acquired shareholding in National Foods Holdings. Today Innscor holds a 37.45% share

NF restructured into autonomous Business Units which increased from 5 to 8. The front end of the business (GTM) was also restructured into 3 channel specific selling units.

2022

National

Foods disposed its 40% stake in Pure Oil Industries

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